@folks19 wrote:What will happen if I do a balance transfer to a card with bo balance or a balance less then the transfer? Will I have a negative balance of that card?
Additionally, what happens if I make a balance transfer to a debit card? Will the money go to my bank account?
I have never tried a balance transfer to a debit card, but I believe the transfer will fail because the card number doesn't meet the verification of a credit card.
You could potentially transfer more to a credit card than is owed... depending on the banks involved, you could end up with a negative balance, or the transfer could be rejected, or the receiving bank might send back the overage.
If you did get the account to have a negative balance, it would report with a $0 balance and your normal credit limit. After 30 to 90 day's if you haven't spent the money they will normally mail you a check to bring the account to $0.
Considering most banks charge a fee for balance transfers, it doesn't make much sense to me to transfer more than is owed... since the purpose IMHO is to reduce the interest you are paying to allow quicker pay off of debt.
@folks19 wrote:What will happen if I do a balance transfer to a card with bo balance or a balance less then the transfer? Will I have a negative balance of that card?
Additionally, what happens if I make a balance transfer to a debit card? Will the money go to my bank account?
If you do a balance transfer to a card with a balance less than the transfer, there will be a credit balance, which will report as zero. Depending on the size of the credit balance, some institutions will not let it sit there but will send you a refund check.
I see no problem with going a little bit over your balance, but sending a balance transfer payment to an account with no balance sounds like a complication waiting to happen.
@tcbofade wrote:...but wouldn't it be simpler to do a balance transfer to your checking account?
Citi, Chase, and Discover have that option... I don't know who else does or does not.
I second this... BECU and Bank of America (some accounts) can take a cash advance/ balance transfer to checking account from a card.
I have personal experience with BECU taking a cash advance during the 0% apr intro with no fees... as far as BoA, I know people who have and I know people who were told no.
@folks19 wrote:@chiefone4u @SouthJamaica The purpose of doing this is to get an almost free loan with a 0% APR card and use the money for any purpose like in @ipmyf88 case.
I think you're looking for trouble.
Both for the original reason, that making a payment on an account with no balance could cause complications, and for the additional reason you've just provided, which is that you may well be violating the terms of the balance transfer.
@tcbofade wrote:...but wouldn't it be simpler to do a balance transfer to your checking account?
That's what I want to know!
The example given of a BT to Amex, then having them move the money to the bank account....why? Why not just BT directly to the bank account?
As for an "almost free loan"--I'm not seeing it, unless the BT offer has a 0% fee (different than a 0% APR). Most BT offers have fees ranging from 2-5%, so any amount will incur a fee--how is that almost free?
OP, if you'd clarify what your actual objective is, that might help! Because right now I'm scratching my head wondering why you'd want to overpay accounts, try to pay a debit card, and so on. Why not just put the BT in your bank account?
@chiefone4u wrote:
@tcbofade wrote:...but wouldn't it be simpler to do a balance transfer to your checking account?
Citi, Chase, and Discover have that option... I don't know who else does or does not.
I second this... BECU and Bank of America (some accounts) can take a cash advance/ balance transfer to checking account from a card.
I have personal experience with BECU taking a cash advance during the 0% apr intro with no fees... as far as BoA, I know people who have and I know people who were told no.
My BofA BT offers always have the option to deposit into a bank account. I'm not talking about an intro period, just in general.